Bangladesh Rules Out Gas Pipeline With India

The Bangladesh government will neither import electric power from India, nor is it thinking of allowing any pipeline to carry its surplus gas to India. If ever there is surplus gas for export, it will be not be carried by pipeline, but can go in the form of LNG.

This was stated by the Bangladesh minister for commerce and industries, Tofail Ahmed and the minister of state for planning, tourism and aviation, Moijuddin Khan Alamgir.

The two ministers were part of the top level Bangladesh delegation who came to Calcutta to participate in the US Investment Summit: The Emerging East.

 

The ministers told newsmen that the preliminary talks of importing power from India were initiated during the previous regime. But, our government has no plans to import power from India. We want to stand on our own feet. We shall add 2000 mw of generating capacity by the turn of the century.

As for the prospects of exporting natural gas, the ministers expressed surprise that two multinationals, Enron and Unocal have made statements of importng gas from Bangladesh. They are only among 21 foreign companies who are biding for contract to explore several blocks for gas. We shall have agreement with them for production sharing. But, the foreign companies cannot unilaterally decide if their share of the gas can be exported, said the ministers. The RPG group too has never talked to Bangladesh about gas import, they said.

The present proven reserve of gas in Bangladesh was 10/12 trillion cubic feet. However, the country expects to prove reserves of 50 to 80 trillion cft. If the hopes are fulfilled, Bangladesh will first set up a number of power plants to meet the growing power shortage. It will also set up five gas-based fertiliser plants so that fertiliser can be exported to earn foreign exchange for the country.

Gas, the ministers were optimistic, will make Bangladesh the most prosperous country in the sub-continent in not too distant a future. Any decision on exporting gas will be taken only after the country is satisfied that its reserves were large enough to justify export.

But, for inexplicable reasons, the countrys government has taken a decision that Bangladesh will not be linked with any country by a common gas pipeline though it is a standard arrangement the worldover to lay cross-country gas pipelines.

Any surplus gas, the minister said, can be exported only in the liquified form which will be exported in tankers over sea routes. The processing of natural gas into LNG will lead to an increase in costs, the ministers agreed. But, they did not explain what was their objection to export gas through pipeline.

Asked if Bangladesh will allow multinationals to pay pipeline along its territory for transporting gas into eastern India from either Myanamar or Tripura, the minister said,We have no such proposal for consideration. We shall take a decision when a proposal is placed before use. They refused to say if there was any in-principle objection to the concept.

Answering a question on opening bus service between Calcutta and Dhaka, the ministers said that both India and Bangladesh have agreed to the idea. But, India wants to have a comprehensive transportation treaty while Bangladesh would like to have a single treaty on the Calcutta-Dhaka bus service. Our approach is different and hence the delay.